Investors’ allocations to U.S. stocks and bonds have climbed as White House moves intensified volatility in overseas markets

U.S. foreign policy has driven sharp swings in global markets this summer, drawing investors into the relative safety of the U.S. where growth and earnings are considered steadier.

The White House’s recent actions on trade and international sanctions have amplified steep declines across markets in Turkey, Russia and China at a time emerging economies were already grappling with a stronger dollar and decelerating global growth.

In...

RELATED VIDEO

Why You Should Care About Turkey's Meltdown

A financial crisis is continuing to unfold in Turkey. The WSJ's Gerald. F. Seib looks at three important reasons why you should care about Turkey's economic troubles. Photo: Getty